Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

Segment Information

Segment Information

In the second quarter 2011, in view of the company's expanded business portfolio following the Danisco acquisition, two new reportable segments were added: Industrial Biosciences and Nutrition & Health. The Industrial Biosciences segment includes Danisco's enzyme business and the DuPont Sorona^® renewably sourced polymer and Bio-PDO^TM businesses, previously reported in Other. The new Nutrition & Health segment contains Danisco's specialty food ingredients business and DuPont's Nutrition & Health business, previously reported as part of the Agriculture & Nutrition segment. The former Agriculture & Nutrition segment, now renamed Agriculture, includes the Pioneer and Crop Protection businesses. In summary, the company has 14 businesses, aggregated into nine reportable segments based on similar economic characteristics, the nature of the products and production processes, end-use markets, channels of distribution and regulatory environment. The company continues to include certain embryonic businesses not included in the reportable segments, such as pre-commercial programs, and nonaligned businesses in Other.

Segment sales include transfers to another business segment. Products are transferred between segments on a basis intended to reflect, as nearly as practicable, the market value of the products. Segment pre-tax operating income (loss) (PTOI) is defined as operating income (loss) before income taxes, exchange gains (losses), corporate expenses and interest. Prior year's data have been reclassified to reflect the current organizational structure.

Three Months Ended September 30,	Agriculture2				Electronics & Communications			Industrial Biosciences3				Nutrition & Health4				Performance Chemicals			Performance Coatings		Performance Materials			Safety & Protection			Pharm-aceuticals		Other				Total1
2011
Segment sales	$	1,368			$	841		$	293			$	844			$	2,142		$	1,100	$	1,745		$	1,001		$	—	$	2			$	9,336
Transfers	(1		)		(4		)	(4		)		—				(58		)	—		(27		)	(4		)	—		—				(98		)
Net sales	1,367				837			289				844				2,084			1,100		1,718			997			—		2				9,238
PTOI	(194		)	5,6	99			(27		)	7,8	(34		)	7,8	593			72		231			118			70		(78		)	7	850
2010
Segment sales	$	967			$	703		$	—			$	304			$	1,675		$	937	$	1,578		$	871		$	—	$	49			$	7,084
Transfers	—				(4		)	—				—				(59		)	—		(17		)	(3		)	—		—				(83		)
Net sales	967				699			—				304				1,616			937		1,561			868			—		49				7,001
PTOI	(191		)		126			—				10				292			64		281			134			111		(64		)		763

Nine Months Ended September 30,	Agriculture2				Electronics & Communications			Industrial Biosciences3				Nutrition & Health4				Performance Chemicals			Performance Coatings			Performance Materials			Safety & Protection			Pharm-aceuticals		Other				Total1
2011
Segment sales	$	7,869			$	2,543		$	416			$	1,654			$	5,934		$	3,198		$	5,197		$	2,991		$	—	$	39			$	29,841
Transfers	(1		)		(14		)	(5		)		—				(194		)	—			(81		)	(10		)	—		—				(305		)
Net sales	7,868				2,529			411				1,654				5,740			3,198			5,116			2,981			—		39				29,536
PTOI	1,743			5,6	313			(34		)	7,9	(4		)	7,9	1,490			210			773			406			200		(179		)	7	4,918
2010
Segment sales	$	6,641			$	1,991		$	—			$	902			$	4,658		$	2,801		$	4,688		$	2,505		$	—	$	154			$	24,340
Transfers	(1		)		(13		)	—				—				(162		)	(1		)	(54		)	(8		)	—		—				(239		)
Net sales	6,640				1,978			—				902				4,496			2,800			4,634			2,497			—		154				24,101
PTOI	1,478				339			—				44				756			184			772			357			402		(111		)		4,221

_______________________________

¹ A reconciliation of total segment PTOI to income before income taxes is as follows: 

	Three Months Ended  September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Total segment PTOI	$	850		$	763		$	4,918		$	4,221
Net exchange losses, including affiliates	(6		)	(160		)	(145		)	(25		)
Corporate expenses and net interest	(275		)	(273		)	(913		)	(711		)
Income before income taxes	$	569		$	330		$	3,860		$	3,485

²  As of September 30, 2011, Agriculture net assets were $8,058, an increase of $3,131 from $4,927 at December 31, 2010. The increase was primarily due to higher trade receivables due to normal seasonality in the sales and cash collections cycle.

³  As of September 30, 2011, Industrial Biosciences net assets were $2,596 compared to $0 at December 31, 2010, due to the Danisco acquisition.

⁴  As of September 30, 2011, Nutrition & Health net assets were $6,497, an increase of $5,547 from $950 at December 31, 2010. The increase was primarily due to the Danisco acquisition.

⁵  Included a $(50) charge recorded in research and development expense in connection with a milestone payment associated with a Pioneer licensing agreement. Since this milestone was reached before regulatory approval was secured by Pioneer, it was charged to research and development expense.

⁶  Included a $(75) charge recorded in cost of goods sold and other operating charges associated with the company's process to fairly resolve claims associated with the use of Imprelis^®. See Note 11 for additional information.

⁷  Included a $(36) restructuring charge impacting the following segments: Industrial Biosciences - $(8); Nutrition & Health - $(10); and Other - $(18). See Note 4 for additional information.

⁸  Included a $(132) charge for the fair value step-up of inventories that were acquired as part of the Danisco transaction and sold in the third quarter 2011, which impacted the segments as follows: Industrial Biosciences - $(53) and Nutrition & Health - $(79).

⁹  Included second and third quarter 2011 charges totaling $(182) for transaction related costs and the fair value step-up of inventories that were acquired as part of the Danisco transaction, which impacted the segments as follows: Industrial Biosciences - $(70) and Nutrition & Health - $(112).